The KBC legal action against Treasury Holdings which was adjourned at the start of August, is set to continue this morning [CORRECTION: The Court Service has not updated its daily list since 8th August, 2012 and the case is not in fact due to continue until Monday 27th August]. KBC is seeking a winding up order for Treasury, on foot of a claim for outstanding loans of €30m. Treasury Holdings which was founded by the colourful Johnny Ronan and understated Richard Barrett is mired in litigation with NAMA – Treasury lost its judicial review case against the Agency last month, but was set to appeal. Separately NAMA is suing Treasury and its founders over debts. Treasury is also suing NAMA over the treatment of debt associated with the Battersea Power Station site in central London – it’s a veritable “Litigationfest”, but if Treasury is wound down today, then that may undermine the future of any litigation.
Meanwhile a separate Treasury company, Treasury China Trust (TCT) which is listed on the Singapore stock exchange and which is a major developer in China, faces “charges from one of its investors that the firm is run for the benefit of its fund managers and lacks independent board oversight” – in fact the charges are at this point no more than claims by a TCT minority shareholder – whose name is Mano Sabnani – and “Richard David, chief executive of Treasury China Trust (TCT), denied the charges and indicated that controls over the group’s management by Singapore regulatory bodies should be sufficient to protect shareholders’ interests”
Treasury has been at pains to draw a distinction between Treasury Holdings in Ireland (which also has assets in the UK) and Treasury China Trust. The Irish operation has exposure of €1.7bn to NAMA and is generally heavily indebted. The China operation is understood NOT to have exposure to NAMA, and seems to be in an altogether financially healthier condition. Regardless, it is a challenging time for Treasury’s founders…
UPDATE: 21st August, 2012. The case is not in fact due to continue until Monday 27th August, 2012. The “Daily List” at the Courts Service has not in fact been updated since 8th August 2012.